Multiple Choice Questions including Recalled Questions for
Bank Promotion Exams
1. SLR is defined in which section
and act.
Option A. 42 of RBI Act.
Option B. 24 of Banking Regulation
Act.
Option C. 42 of Banking Regulation
Act.
Option D. 24 of RBI Act.
The correct answer is option B. 24
of Banking Regulation Act.
2. Safe Custody is defined in which
act.
Option A. Indemnity Act.
Option B. SARFAESI Act.
Option C. Indian Contract Act.
Option D. Indian Property Act.
The correct answer is option C.
Indian Contract Act.
3. What is the priority sector Target
for agriculture?
Option A. 28% of ANBC.
Option B. 40% of ANBC.
Option C. 10% of ANBC.
Option D. 18% of ANBC.
The correct answer is option D. 18%
of ANBC.
4. Guarantor’s right on payment of
debt is called as.
Option A. Right of appropriation.
Option B. Right of Subrogation.
The correct answer is option B.
Right of Subrogation.
5. What is the time duration for KYC updation for
medium risk customers.
Option A. Once in 2 years.
Option B. Once in 10 years.
Option C. Once in 8 years.
Option D. Once in 5 years.
The correct answer is option C.
Once in 8 years.
6. What is Breakeven point?
Option A. When profit is there.
Option B. No profit no loss.
Option C. when loss is there.
The correct answer is option B. No
profit no loss.
7. What is the full form of CFT?
Option A. Combating Financing of
Terrorism.
Option B. Combating Freedom of
Terrorism.
Option C. Creating Financing of
Terrorism.
Option D. Closed Financing of
Terrorism.
The correct answer is option A.
Combating Financing of Terrorism.
8. What is the Relation between bank and customer
in case of standing instruction.
Option A. Creditor and debtor.
Option B. Debtor and creditor.
Option C. Agent
and Principal.
Option D. Lessor and lessee.
The correct answer is option C.
Agent and Principal.
9. what is the Limitation of execution of decree?
Option A. 13 years.
Option B. 30 years.
Option C. 16 years.
Option D. 12 years.
The correct answer is option D. 12
years.
10. What is the
full form of LEI?
Option A. Loan
Entity Identifier.
Option B. Legal Enterprise
Identifier.
Option C. Legal Entity Industry.
Option D. Legal Entity Identifier.
The correct answer is option D. Legal
Entity Identifier.
11. Nodal agency for PMEGP that is Prime Minister’s
Employment Generation Programme is Khadi and Village Industries Commission
(KVIC).
Khadi and Village Industries
Commission (KVIC) is a statutory organization under the administrative control
of the Ministry of MSME as the single nodal agency at the National level.
12. E-way bill generated on the GST portal for the
movement of goods is must if consignment value is: More than Rs. 50000.
Option A. More
than Rs. 20000.
Option B. More
than Rs. 25000.
Option C. More
than Rs. 50000.
Option D. More
than Rs. 100000.
The correct answer is option C. More
than Rs. 50000.
13. If SLR is increased by RBI, what will be the
impact on liquidity?
Option A. Liquidity remains same.
Option B. Liquidity reduces.
Option C. Liquidity increases.
The correct answer is option B.
Liquidity reduces.
If the SLR increases, it restricts
the bank’s lending capacity and helps in controlling the inflation by absorbing
the liquidity from the market. Consequently, banks will have less money
available to lend, and they will charge higher interest rates on loans to maintain
their profit margin.
14. Capital market in India is monitored by.
Option A. SEBI.
Option B. RBI.
Option C. AMFI.
Option D. PFRDA.
The correct answer
is option A. SEBI.
35 MCQs Types of Customers and Accounts (Part 2) Bank Promotion exams (2022-23)
15. In USSD- D stand for.
Option A. Data.
Option B. Device.
Option C. Deposit.
Option D. Debit.
The correct answer is option A.
Data.
16. What is capital adequacy ratio and formula for
Capital adequacy ratio?
Definition:
Capital Adequacy Ratio (CAR) is the ratio of a bank’s capital in relation to
its risk weighted assets and current liabilities. It is decided by RBI to
prevent commercial banks from taking excess leverage and becoming insolvent in
the process.
As per RBI, Banks
shall maintain a minimum capital to risk weighted assets ratio of 9%.
Formula for Capital Adequacy Ration
is. Capital divided by Risk weighted Assets.
17. What is the minimum amount for RTGS
transactions?
Option A. Rupees 100.
Option B. Rupees 2 lakh.
Option C. Rupees 1 lakh.
Option D. Rupees 5 lakh.
The correct answer is option B. Rupees
2 lakh.
18. What is the Maximum limit of NEFT?
Option A. Rupees 10 lakhs.
Option B. No
limit.
Option C. Rupees 5 lakhs.
Option D. Rupees 50 lakhs.
The correct answer is option B. No
limit.
19. What is the full form of IFSC?
Option A. Indian Financial System
code.
Option B. Indian Finance Systematic
code.
Option C. Indian Financial System
corporation.
Option D. Indian Financial System
committee.
The correct answer is option A.
Indian Financial System code.
20. What is Vostro Account?
Option A. Account of an Indian bank
with a foreign bank in India.
Option B. Account of a foreign bank
with another foreign bank in India.
Option C. Account of a foreign
correspondent bank with a bank in India.
Option D. Account of an Individual
with a foreign bank in India.
The correct answer is option C.
Account of a foreign correspondent bank with a bank in India.
21. What is the number of members JOINT LIABILITY GROUP?
Option A. 15 to 20.
Option B. 10 to 20.
Option C. 5 to 8.
Option D. 4 to 10.
The correct answer
is option D. 4 to 10.
22. What is the relation between a banker and
customer in “DEPOSIT OF CASH IN BANK FOR SPECIFIC PURPOSE”?
Option A. Debtor and Creditor.
Option B. Trustee and Beneficiary.
Option C. Creditor and Debtor.
Option D. Lessor and Lessee.
The correct answer is option B.
Trustee and Beneficiary.
23. Protection to
a banker regarding material alteration is given under which section of
Negotiable Instruments Act?
Option A. Section 79 of N I Act.
Option B. Section 69 of N I Act.
Option C. Section
89 of N I Act.
Option D. Section 85 of N I Act.
The correct answer
is option C. Section 89 of N I Act.
24. What is the validity period of KCC?
Option A. 1 years.
Option B. 5 years.
Option C. 4 years.
Option D. 3 years.
The correct answer is option B. 5
years.
25. Who decide interest rate on saving deposit:
Bank themselves not RBI.
Option A. RBI.
Option C. IBA.
Option D. Finance Ministry.
The correct answer is option B.
Bank themselves.
